Agricultural News

This Week on SUNUP - Kim Anderson Warns if too Many Acres are Planted in Cotton Prices will Sink

Thu, 15 Feb 2018 16:18:02 CST

This week on SUNUP - Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host Dave Deeken again, talking about the overall situation in the global wheat market and how it is affecting producers here in Oklahoma.

This past week, Anderson says the price of wheat rallied nearly $0.80 which for many farmers right now is enough to cover the variable cost of wheat. Currently, Anderson reports that markets are offering a forward contract price for harvested wheat at $4.35 - which is positive considering a recent budget outline by Anderson’s colleague, Trent Milacek, putting wheat margins within the parameters of about $2.00 for wheat at 35 bu./acre.

However, many farmers are still expected to invest acres of production into cotton rather than wheat. Anderson warns that this alternative crop comes with its own risks and believes the price of cotton, although attractive now, could fluctuate down by harvest time.

At the same time, the Black Sea region seems to be dominating the global marketplace. Analysts are saying that Australia has lost its wheat business in East Asia to Russia and the Ukraine with the general consensus that this may be a permanent change. Russia’s production increased from 2 billion bushels up to 3.1 billion just this past year.

Anderson says it is much cheaper for Russia to produce wheat right now and has excellent land and growing conditions well-suited for wheat production. In addition, Russia has recently made a renewed investment in its agricultural infrastructure and enjoys strategic geographical convenience and access to much of the world.

You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.

Beyond Dave's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:

- In the Mesonet weather report, Al Sutherland shows us which Mesonet sites have not seen rain since October. Also, Gary McManus tells us how the expansion of drought impacts the latest drought monitor.

- In Cow-Calf Corner, Glenn Selk explains research findings that show the connection between birthweights and air temperatures.

- Derrell Peel says cattle producers need to have a plan for drought to help take emotion out of potential liquidations.

- In Vet Scripts, Dr. Barry Whitworth explains how mycoplasma affects poultry and how to control it.

- Finally, learn how a Noble County producer is using aquaponics on his farm.